MN Bill to Help Beginning Farmers With
Access to Land Moves Forward

LSP Launches 2007 Legislative Platform at Family Farm Breakfast

CONTACT: Paul Sobocinski, LSP, 507-430-1509

2/8/07
SAINT PAUL, Minn.—An initiative that would help Minnesota’s beginning farmers with access to land passed the Senate Agriculture and Veterans Budget and Policy Committee on Tuesday. Senate File 287, authored by Sen. Gary Kubly (DFL-Granite Falls) is a key plank in the Land Stewardship Project’s 2007 Legislative platform.The bill would create tax credits for landowners who rent land to beginning farmers. The credit would be for up to 15 percent of the gross rental income. The initiative would also make it possible for beginning farmers to receive a state tax credit of $500 towards the cost of participating in a farm business management program.

Co-authors of the bill are Senators Jim Vickerman (DFL-Tracy), Keith Langseth (DFL-Glyndon), David Senjem (R-Rochester) and Rod Skoe (DFL-Clearbrook). S.F. 287 now goes onto the Senate Taxes Committee.

Several Minnesota farmers testified before the committee in favor of the proposed bill, including Land Stewardship Project members Jerome Graff of Sanborn and Paul Sobocinski of Wabasso. Sobocinski described how during the past decade the Land Stewardship Project’s Farm Beginnings program has been very successful in helping beginning farmers get prepared for a career in agriculture, but often the program’s graduates find lack of access to land to be a major barrier.

“Agriculture needs to return more young people to the farm so they can in turn help our communities and schools stay viable,” said Graff. “This bill can help do that.”

Sen. Kubly said providing landowners an incentive to rent to beginning farmers could help those that have few financial resources.

“Renting land is a good way to build equity and position beginning farmers to buy land someday,” said Kubly. “Minnesota needs to increase its support for agriculture, especially beginning farmers. This bill is a step in that direction.”

The proposal is based on a successful beginning farmer tax credit program in Nebraska. Only 15 percent of low-equity beginning farmers attain land capital by purchasing it, making renting a critical tool for this group of farmers, according to the USDA’s Economic Research Service. A USDA report on beginning farmers and credit concluded that farm financing should be reoriented to help low-equity beginning producers compete in the land rental market.

The passage of the tax credit came on the same day as the Land Stewardship Project’s second annual Family Farm Breakfast at the Capitol, which was held at Christ Lutheran Church in Saint Paul. Over 120 citizens and 26 legislators attended the breakfast, which featured food from local Minnesota farms. During the breakfast, LSP unveiled “Renewing Family Farms and Rural Minnesota”—its legislative platform for 2007 (www.landstewardshipproject.org/pr/07/policy_platform.pdf). The platform calls for policies that support: the next generation of farmers, stewardship of the land, local democracy and corporate accountability, community based local food systems and community based renewable energy.

Another legislative initiative that the Land Stewardship Project supports, a dairy investment tax credit, also passed the Senate Agriculture and Veterans Budget and Policy Committee on Tuesday. This initiative (S.F. 76), would provide a tax credit to dairy farmers for making improvements to their operations, including improvements related to on-farm processing and pasture development.

Land Stewardship Project member Dave Minar told the committee that it was important to include such improvements as pasture improvement, on-farm processing and refrigerated trucks in the bill. Minar, along with his wife Florence and their five children, operate Cedar Summit Farm, a 150-cow grass-based dairy that processes its own milk and ice cream. Minar said this value-added venture has allowed them to support their family while providing employment opportunities for others in the community.

“We employ 16 people, all living within a 10-mile radius,” said Minar. “We are pretty proud of the impact we have with just 150 cows.”

-30-